NOTES TO THE FINANCIAL STATEMENTS
22. TRADE AND OTHER RECEIVABLES - CURRENT
Group |
Company |
|||
2010 |
2009 |
2010 |
2009 |
|
Trade receivables |
174.5 |
154.9 |
- |
- |
Less: provision for impairment of receivables |
(50.6) |
(43.1) |
- |
- |
Trade receivables |
123.9 |
111.8 |
- |
- |
Amounts owed by subsidiary undertakings |
- |
- |
84.2 |
68.9 |
Other receivables |
8.1 |
23.3 |
0.3 |
1.3 |
Other prepayments and accrued income |
62.9 |
43.2 |
- |
- |
194.9 |
178.3 |
84.5 |
70.2 |
|
The Directors consider that the carrying amount of trade and other receivables approximates to their fair value.
There is no concentration of credit risk in trade receivables. The Group has a large number of customers who are dispersed and there is no significant loss on trade receivables expected that has not been provided for. The Group has created IAS 39 portfolio provisions, but cannot practicably identify which receivables specifically are the ones impaired. It is Group policy to consider a receivable in a portfolio to which an impairment has been allocated on a collective basis as not being impaired for the purposes of IFRS 7 disclosures until the loss can be specifically identified with the receivable.
The ageing of trade receivables which are past due but not specifically impaired was:
2010 |
2009 |
|
Group |
||
Past due 1 - 30 days |
27.4 |
25.2 |
Past due 31 - 120 days |
10.3 |
10.2 |
More than 120 days |
71.7 |
61.7 |
The Group's two principal operating businesses specifically review separate categories of debt to identify an appropriate provision for impairment. South West Water Limited has a duty under legislation to continue to provide domestic customers with services regardless of payment.
The movement in the allowance for impairment in respect of trade receivables was:
2010 |
2009 |
|
At 1 April |
43.1 |
36.2 |
Provision for receivables impairment |
7.9 |
6.7 |
Receivables written-off during the year as uncollectible |
(6.9) |
(5.1) |
Cumulative amounts previously excluded from debt |
6.5 |
4.9 |
Arising on acquisitions |
- |
0.4 |
At 31 March |
50.6 |
43.1 |
Other receivables and prepayments include site development and pre-contract costs of £4.0m (2009 £18.0m).